A new report published by real assets specialist Alpha Real Capital has found that over the next two years, 58 percent of U.K. pension schemes — which collectively manage some £143.6 billion (€171.7 billion) of assets — believe their counterparts will increase their allocation to real estate investment vehicles offering a social benefit. These primarily consist of affordable housing, healthcare and education assets in the social real estate and infrastructure sectors.

Alpha Real Capital notes, “Underpinning the opportunity to invest in these assets is the current ‘perfect storm’ facing the U.K.’s social sectors — a growing and ageing population that is placing increasing pressure on existing social infrastructure, which is, in many instances, inadequate and insufficient, due to obsolescence and being in short supply, respectively.”

The COVID-19 crisis has been a key driver behind the growing emphasis on social real estate, according to the report. 66